TSX:CUS.DB.D - Post by User
Comment by
Khersonon Jun 29, 2015 3:29pm
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Post# 23878207
RE:If you are a rational investor -
RE:If you are a rational investor - ocean112 wrote: Here is the math:
NaCL = $60M (average historical EBITDA)
HCL = $35M (average historical EBITDA)
Brazil = $23M (average historical EBITDA)
Total = $120M
Chemtrade/Superior Plus trading at 8.5 and 9.2 x EBITDA - so give 8.5 for chemicals business to Canexus.
Chemicals = $120M x 8.5 = $1,020,000,000
Net Debt = $584M
Net Value = $436M
Shares Outstanding = 186M
Value per share = $2.34 without NATO
NATO - in the right hands - lets assume a buyer can generate $60M (forget salt caverns, etc - lets assume they can get NATO to full capacity quickly - like a transcanada).
I'm going to give NATO a 5x EBITDA value = ultra conservative = $300M (almost 45% off thier cost)
Per share = $1.61
Value per share = $1.61+2.34 = $3.95
Being ULTRA conservative. Hence - hold for a year or two and you should be fine.